Full tax deductibility of financial advice and higher professional standards for advisers are on the wish-list of financial services industry groups represented at the Parliamentary joint committee on corporations and financial services inquiry.

The Investment and Financial Services Association (IFSA) made the call for tax deductibility in the interest of Australians planning for retirement.

The Federal Government launched the inquiry in March in the wake of corporate collapses including that of Storm Financial.

New IFSA CEO John Brogden told the inquiry tax deductibility for all financial advice is essential so investors can choose how they pay for their advice.

He says the financial services licensing process needs to be reviewed, but any reforms must ensure affordable access to financial advice.

Mr Brogden also called on the Australian Securities and Investments Commission to detect market misconduct faster, saying the industry has an important role to play by alerting and assisting the regulator to what is happening.

Financial Planning Association of Australia (FPA) CEO Jo-Anne says reform is needed across the entire financial services industry and certain groups of professionals should not be singled out.

The FPA wants the term “financial planner” to be defined and for planners to be held to higher standards.

It also wants a review of retail, client compensation and professional indemnity insurance, improved licensing and supervision of Australian financial services licensees, the removal of product providers from the remuneration process, and a new look at disclosure practices.